Hello,
After some time struggling with the development environment (I have to admit that this time was much easier with bitbake...) and removing konqueror-embedded from the build (it doesn't compile) I managed to make a build with the latest and greatest openzaurus and kernel 2.6.11-rc5.
Appart from the touchscreen everything works quite ok.
Weren't the touschreen issues already solved? Do I have to apply a special patch? Is it not handled by the build?
Appart from that, I was amazed to see a 2.6 kernel running on my 860. Impressing.